In 2009, China Will Implement More Favorable Beneficial Tariff to Promote Foreig

For 2009 duties adjustment in China, the relevant personnel in the Ministry of Finance of the P.R.C points out that based on the free trade protocols and tariff preference agreements signed with the related countries and regions, China will further implement the conventional tariff and preferential tariff which are more favorable than the most favored nation tariff, so as to promote foreign trade cooperation with related countries and regions to realize the mutual benefits and win-win development.
 

In order to promote the stable growth and structural optimization of import and export, implement the positive fiscal policy and develop the function of customs duties in macro-economic control, so as to boost the quick and steady growth of economy, China will further adjust the tax regulations for import and export duties since January 1, 2009 as deliberated by the Customs Tariff Commission of the State Council and approved by the State Council. The adjustment thereof mainly includes the most favored nation tariff, annual provisional tax rate, conventional tariff, preferential tariff, tax regulations and taxable items, etc.
 

For such questions as the customs tariff-related measures adopted in 2009 for strengthening the foreign trade cooperation, the relevant personnel in the Ministry of Finance indicates that currently, the international financial crisis is further worsen and China's foreign trade suffers from the impact thereof. So, the customs tariff shall be properly implemented to promote and strengthen the bilateral and multilateral economical trade cooperation, so as to guarantee the stable development of foreign trade.
 

The person in charge in the Ministry of Finance also points out that based on the free trade protocols and tariff preference agreements signed with the related countries and regions, China will further implement the conventional tariff and preferential tariff in 2009, which are more favorable than the most favored nation tariff, so as to promote the trade cooperation with related countries and regions to realize the mutual benefits and win-win development.
 

I.      The conventional tariff for free trade between ASEAN and China shall be continuously implemented for part of taxable items originated from ten countries in ASEAN. Also, the ordinary tax cutting at the third stage shall be carried out. After tax cutting, the taxable items with conventional tariff will reach around 6750, so as to achieve the average preferential margin of about 80% as compared with the most favored nation tariff;
 

II.     The conventional tariff for free trade between Chile and China shall be continuously implemented for part of taxable items originated from Chile. Also, the overall tax cutting at the fourth stage shall be carried out. After tax cutting, the taxable items with conventional tariff will reach 6978, so as to achieve the average preferential margin of over 80%;
 

III.    The conventional tariff for free trade between Pakistan and China shall be continuously implemented for part of taxable items originated from Pakistan. Also, the overall tax cutting at the third stage shall be carried out. After tax cutting, the taxable items of which the conventional tariff is lower than the most favored nation tariff will reach 6191, so as to achieve the average preferential margin of around 37%;
 

IV.    The conventional tariff for free trade between New Zealand and China shall be continuously implemented for part of taxable items originated from New Zealand. Also, the tax cutting at the second stage shall be carried out. After tax cutting, the taxable items with conventional tariff will reach 6989, so as to achieve the average preferential margin of over 40%;
 

V.      The conventional tariff of "Asian Pacific Trade Agreement" shall be continuously implemented for 1751 taxable items originated from ROK, India, Sri Lanka, Bengal and Laos, among which the applicable rate for specific taxable items shall be further lowered, so that the average preferential margin will reach around 23 %;
 

VI.    The zero tariff shall be continuously implemented for the products originated from Hong Kong and Macao. As per the current origin criterion, the taxable items for Hong Kong and Macao with zero tariff will respectively reach 1539 and 681since January 1, 2009;
 

VII.  As per the free trade protocol between Singapore and China, China will lower the tariff for part of products originated from Singapore for the first time since January 1, 2009. As compared with the free trade protocol between ASEAN (Singapore is also the member state of ASEAN) and China, China will accelerate the tax cutting for 708 taxable items thereof. The remained taxable items shall have the level of tax cutting, which is the same as that as specified in the free trade protocol between ASEAN and China. After tax cutting, the taxable items with the conventional tariff for free trade between Singapore and China will reach 2739. The average preferential margin will be around 75 %.
 

In addition, the preferential tariff shall be continuously adopted for certain products from 41 least developed countries, including 4 Southeast Asia countries such as Laos, 31 African countries such as Sultan and 6 other countries such as Yemen. The zero rate is available for most commodities. Also, the taxable items cover the vast majority of commodities imported by China from the above countries.